Barrick Gold sells Cowal Gold mine

Barrick Gold has sold its Cowal gold mine to Evolution Mining for $US550 million.

The Cowal mine, located 40km north-east of West Wyalong in New South Wales, is a large-scale, long life operation with estimated annual production of 230,000-260,00 ounces at an all-in-sustaining-cost of $850-900 per ounce.

This is the second gold mine acquisition for Evolution in less than a month after it entered into a binding agreement to buy La Mancha’s Australian operations.

Evolution now has seven Australian operations located in Queensland, Western Australia and New South Wales, with a combined group current annual production of 760,000-860,000 ounces.

Evolution’s executive chairman, Jake Klein, said the purchase of Cowal is a “truly transformational acquisition” for the company.

“Very rarely does an opportunity arise to acquire a high quality asset like Cowal,” Klein said.

“This is an asset that has a long history of stable, large scale, low cost production.

“It is also an asset that we believe provides us with an attractive range of upside opportunities.”

Meanwhile, Barrick Gold said the sale of Cowal is consistent with its target to pay-down debt, and further focus its geographic footprint.

“We would like to extend our gratitude to our Cowal employees, who have made a significant contribution to Barrick since the mine began production in 2006, and we wish them future success as part of the Evolution team,” Barrick Co-President Kelvin Dushisky said.

The transaction is expected to be completed in the third quarter of 2015 and is subject to customary closing conditions.